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    Exam 7: Interest Rates and Present Value
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    If the Inflation Rate Is 5% and the Nominal Interest
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If the Inflation Rate Is 5% and the Nominal Interest

Question 81

Question 81

Multiple Choice

If the inflation rate is 5% and the nominal interest rate is 4%, then the real interest rate is around


A) -1%.
B) 1%.
C) 9%.
D) 20%.

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